Varmora Granito shares traded flat to mildly higher on Tuesday, following a decent debut on the stock exchanges. The tiles and bathware maker listed at a premium of nearly 5% over its IPO price of ₹148, with the stock opening at ₹152 on the BSE, up 2.70%, and at ₹155 on the NSE, marking a 4.72% premium.
Following the listing, Varmora Granito shares traded more than 1% higher on the BSE, while the stock was largely flat on the NSE. The company’s market capitalisation stood at around ₹3,474.93 crore.
The company’s ₹708-crore IPO was subscribed 1.58 times on the final day of bidding. The issue had a price band of ₹140– ₹148 per share and comprised a fresh issue of shares worth up to ₹320 crore and an offer-for-sale (OFS) of 2.62 crore shares worth up to ₹388 crore by investor Katsura Investments.
Varmora Granito had reduced the fresh issue size from the ₹400 crore proposed earlier and also cut the OFS component from the 5.24 crore shares outlined in its draft prospectus filed in August 2025.
Brokerages highlighted Varmora Granito’s growing focus on glazed vitrified tiles (GVT) and technology-led products, supported by its manufacturing footprint and distribution network. BP Equities noted that GVT and technical products accounted for 84.2% of the company’s tile revenue in FY26, up from 75.4% in FY24. During the same period, the company’s gross margin improved to 37.9% from 35.3%, the brokerage said.
BP Equities also highlighted Varmora Granito’s eight manufacturing facilities in Morbi, along with its extensive distribution network comprising 305 exclusive brand outlets and 2,758 multi-brand outlets as of 31 March 2026.
How Varmora Granito plans to use IPO proceeds
The Rajkot-based company plans to use proceeds from the fresh issue to repay borrowings and dues of its subsidiaries, including Covertek Ceramica, Varmora Sanitarywares and Simola Tiles. The remaining funds will be used for general corporate purposes.
Varmora Granito manufactures and sells a range of tiles, including glazed vitrified, polished vitrified and ceramic tiles, along with bathware products.
Should you buy, sell or hold?
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said Varmora Granito made a positive debut at ₹155 on the NSE, marking a 4.73% premium over its IPO price of ₹148. However, she noted that the stock’s valuation remains demanding at around 60x post-listing P/E.
Nyati said existing investors may maintain a stop-loss around ₹145, while fresh positions could be considered only after better price discovery and sustained earnings performance. She identified ₹148– ₹145 as the key downside support zone, while ₹155– ₹160 is the important range to watch on the upside.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
